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Power Failure: The downfall of General Electric

submitted by gwintr+(OP) on 2025-05-26 21:54:01 | 238 points 163 comments
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5. re+s8[view] [source] [discussion] 2025-05-26 23:24:31
>>ivraat+s5
> feel AI generated

The apparently-AI artwork doesn't help. From some googling it appears to be a direct rip-off of this: https://www.gettyimages.com/detail/news-photo/the-great-amer...

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12. AStone+fe[view] [source] [discussion] 2025-05-27 00:37:09
>>action+N
Did someone say "religious"?

https://computer.rip/2020-06-14-manifest-telephone.html

I said that religion does not thrive under capitalism, and of course this was the fate met by the Bell system. The breakup of the Bell system in 1982 occurred primarily in response to their very high rates, which were (accurately) seen as symptomatic of the monopoly they enjoyed.

CNBC Reporting Live from Jack Welch's funeral, March 5, 2020: https://youtu.be/6opKFgvRzjE?si=ynbAEYEZBCzfuTqE

Nobody is wearing masks, but there is a lot of name-dropping by the field reporter, Robert Frank, and a full obituary in the dooblydoo; don't miss them

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15. gwintr+If[view] [source] [discussion] 2025-05-27 00:57:08
>>delibe+if
Learned something new! First US jet engine - https://www.ge.com/history-ge-aerospace. Thanks for pointing it out.
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26. gwintr+3o[view] [source] [discussion] 2025-05-27 02:46:43
>>peterl+zd
I came up with the organization and the quotes but I definitely used AI to help improve it. For example, a friend pointed out that a word was overly flowery so I asked Claude for some alternatives (https://imgur.com/a/k3sQ7lR). I believe not using AI is going to be like not using a word processor soon. AI will help people communicate more, sharpen their thoughts, and learn faster.

This does have me thinking more about what causes things to look AI-generated. The uncanny valley effect. It seems like some people don't like the header image but I thought that was a nice touch to have a visual element.

What's ironic is I normally use ChatGPT but they have a bug that caused my account to be downgraded so I didn't have my "normal" AI tool today.

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48. omcnoe+oR[view] [source] [discussion] 2025-05-27 09:35:27
>>bradfa+jP
Whether the employer or the employee is contributing to a defined contribution or defined benefit plan, ultimately it's all coming out of the same "employee costs" bucket on the employer side.

Maybe they can work well with proper oversight, but the status quo for the majority of defined benefit plans is to be mismanaged and underfunded. See the role (union negotiated) defined benefit plans had in the US auto industry collapse. 60 out of the 100 largest corporate defined benefit plans in the US are underfunded, more than half! Chart in that article shows that 40% being funded is actually unusually high, historical trend is 15-20% of plans meeting funding levels. https://www.wsj.com/articles/companies-u-s-pension-plans-are...

Funding a defined benefit plan for lower wage workers vs paying lower wage workers more and contributing more to a defined contribution plan has exactly the same costs on the employer side. The only way the defined benefit plan appears to work out better for both parties is because we have legalized the employer not funding these plans to the appropriate level and hanging the supposed beneficiaries of the plan out to dry when it goes south.

Even ignoring the rampant underfunding issues defined benefit plans are a classic example of the principle agent problem where the interests/risk appetite of the fund manager and the fund members don't line up perfectly.

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49. Hilift+GS[view] [source] [discussion] 2025-05-27 09:53:28
>>zdw+Kd
Those were great books, but it doesn't age well when you fawn over Walgreens and a few years later the books have an aged like milk patina.

I worked for GE for a couple of years. They are a conglomerate. They acquired other companies. I worked for a company where GE was the largest customer, and GE acquired it. If a company started to perform poorly, it wouldn't be long before it would either be sold or split apart. The company I was working at probably would have failed anyway due to rapid competition, but since GE used a lot of its products it was sort of a no brainer until an alternative was found.

Acquiring and sunsetting companies is not uncommon now, but back then it wasn't received well and backlash accumulated over time. They had/have a huge part of the jet engine market. Due to their size and executive connections, they were capable of landing large contracts, such as defense and aerospace.

They aren't successful if compared to Meta for example, that nets $70 billion per year.

GE acquired the power grid component of Alstom, a French company in 2014. That company was previously fined by the US DOJ for $772 million for FCPA violations (bribes). (This was back in the US World Police days).

https://en.wikipedia.org/wiki/Alstom#Judicial_investigations

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56. mgh95+OW[view] [source] [discussion] 2025-05-27 10:53:51
>>hoseyo+xC
This goes directly to the question of the PBGC giving bailouts (https://www.pbgc.gov/arp-sfa) rather than windups and dissolution.

These bailouts -- and the decisions if a pension fund should be forcibly closed -- are political in nature. For example, Biden bailing out the Teamsters pension fund (https://bidenwhitehouse.archives.gov/briefing-room/statement...) or the decision by congress to ignore the fact that CalPERS has continuously below the 80% recommended funding for non-governmental pensions putting a 1.7T time bomb in play.

In essence, government is failing to play one of its more essential roles of regulator.

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92. consum+Sl1[view] [source] [discussion] 2025-05-27 14:15:16
>>passwo+2W
As you may already know, the McDonnell Douglas management team that took over Boeing has a direct line back to GE's Jack Welch.

https://www.thenation.com/article/politics/boeing-corporate-...

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103. bredre+ZA1[view] [source] [discussion] 2025-05-27 15:55:38
>>Tycho+9r1
Link to podcast mentioned above: https://www.listennotes.com/podcasts/masters-in-business-blo...
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110. itisha+sG1[view] [source] [discussion] 2025-05-27 16:36:16
>>TomMas+fa1
Here's an interesting article on the history of the plant. Sounds like employment peaked in 1966 with 17 thousand employees before dropping to 7500 in 1972 and staying roughly stable until the 90s. Apparently they've been building radar there since 1987, and I can confirm that's still the purpose of the Lockheed-Martin plant.

https://www.syracuse.com/living/2019/09/an-historical-timeli...

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113. squeed+QH1[view] [source] [discussion] 2025-05-27 16:45:50
>>itisha+sG1
Thanks for the history! Been driving past that plant for almost 40 years going back and forth across the state.

I was surprised when the article opened with what it said was the worlds first transistor radio, because I always thought that was the TR-1. It looks like GE made a prototype, but never took it to market.

https://en.wikipedia.org/wiki/Regency_TR-1

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121. Walter+3L1[view] [source] [discussion] 2025-05-27 17:08:29
>>jansan+UU
"Granted a patent for his turbojet engine in 1936, Ohain joined the Heinkel Company in Rostock, Germany. By 1937 he had built a factory-tested demonstration engine and, by 1939, a fully operational jet aircraft, the He 178. Soon after, Ohain directed the construction of the He S.3B, the first fully operational centrifugal-flow turbojet engine. This engine was installed in the He 178 airplane, which made the world's first jet-powered aircraft flight on August 27, 1939."

https://cs.stanford.edu/people/eroberts/courses/ww2/projects...

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125. psunav+FL1[view] [source] [discussion] 2025-05-27 17:13:09
>>Animal+2L1
That "GE" is the former GE Aviation, and a small remnant of the multinational conglomerate it once was. It was split in three at the end of its long collapse.

https://www.reuters.com/markets/us/ge-completes-three-way-sp...

131. Viktor+QR1[view] [source] 2025-05-27 17:58:20
>>gwintr+(OP)
I haven’t read this book but I read another excellent book about the fall of GE. The book’s name was Lights Out.

Here is a positive review of that other book from Bill Gates:

https://www.gatesnotes.com/lights-out

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132. toss1+zS1[view] [source] [discussion] 2025-05-27 18:03:35
>>Animal+2L1
Stock price is not market capitalization.

30-Aug-2000 GE was $580.94 billion

It's never gotten above around half that valuation since.

Most key divisions were sold off. You can get "GE" label appliances, but it is a Chinese company. Plastics, which invented Lexan, was sold to Sabic. On and on. It is simply not the company it was and will take decades, if ever for it to become that again.

30-July-2020 = $53.13 billion

Since then, the remaining aerospace division has recovered to $257B, but it is a different business.

edit add ref link: https://companiesmarketcap.com/general-electric/marketcap/

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135. BXLE_1+tX1[view] [source] [discussion] 2025-05-27 18:39:52
>>Walter+7E
Axial flow made more demands on metallurgy of the time than centrifugal flow. The Viscount was the first turbine powered civil aircraft using RR Darts with two centrifugal compressor stages.

I enjoyed flying on the Viscount. It offered a much nicer passenger experience than the current crop of sardine cans.

Decades later I got in a lot of time flying the simulator that Air Canada donated to a tech school.

http://www.vickersviscount.net/Pages_Technical/Rolls-RoyceDa...

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141. fluidc+Vk2[view] [source] [discussion] 2025-05-27 22:00:26
>>azalem+Vg2
Marconi was a rebranding of Picker

https://case.edu/ech/articles/m/marconi-medical-systems-inc

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